Melbourne Cup winning jockey Damien Oliver is expected to be charged with illegal betting, throwing his riding career into jeopardy.

The Herald Sun has reported the 40-year-old faces a ban of between eight months and a year if found guilty on two charges relating to allegations he placed a $10,000 bet on a rival horse two years ago.

The paper believes that on Monday afternoon Oliver formally admitted to illegal gambling and also to breaking another rule of racing by using a mobile phone from the jockeys room.

He is is likely to front a hearing next week.

The charges stem from allegations Oliver placed a $10,000 bet, via a third party, on Miss Octopussy at Moonee Valley on October 1, 2010.

The Victorian government has been called on to step in to give stewards more authority to ban jockeys after reports Oliver had admitted betting on a rival horse.

Oliver lost rides in the Cox Plate and Caulfield Cup during the Spring Carnival when the claims were first aired last month.